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How Upcoming Tax Changes Benefit Property Owners in Greece

Real Estate

19.09.2025

Homeowner calculating rental income tax Greece savings in 2026

At the 89th Thessaloniki International Fair, Prime Minister Kyriakos Mitsotakis announced several property tax changes that directly affect primary-residence owners and prospective foreign buyers. If you own a home or plan to buy in Greece, here is what to know about the measures announced in early September 2025.

ENFIA Property Tax Relief for Village Homeowners

There is good news for owners of property in a small town or village of 1,500 or fewer residents. From 2026, owners of a primary residence in these areas get a 50% reduction in their annual property tax (ENFIA). By 2027, the tax will be abolished entirely for this group. The measure benefits owners in 12,720 Greek villages. This relief applies only to primary residences, not to holiday or second homes, and is aimed at supporting communities outside the major cities. A primary residence is the property that is a person's main and permanent home.

Simplified Rental Income Taxes Starting 2026

More owners are letting their homes, long-term or short-term, for extra income. A new intermediate band makes the tax scale fairer for many of them. Until 2025, rental income between €12,001 and €35,000 was taxed at 35%. From 2026, a new 25% band is introduced for income between €12,001 and €24,000, creating a smoother scale. The previous bands (2025):

  • Up to €12,000: 15%

  • €12,001 to €35,000: 35%

  • Over €35,000: 45%


From 2026:


  • Up to €12,000: 15%

  • €12,001 to €24,000: 25%

  • €24,001 to €36,000: 35%

  • Over €36,000: 45%



For example, on €20,000 of rental income:


  • In 2025: €12,000 at 15% (€1,800) plus €8,000 at 35% (€2,800), a total of €4,600.

  • From 2026: €12,000 at 15% (€1,800) plus €8,000 at 25% (€2,000), a total of €3,800.

  • That is a saving of €800.



These rates apply per owner. So if a home has two owners, for example, a couple who bought together, each benefits individually.

Lower VAT for Border Islands

If you live on one of the smaller border islands, you will also benefit from a lower VAT rate. As announced, VAT is reduced by 30% from 2026 for border islands with a population of up to 20,000. The measure previously applied to only five islands and is now extended to dozens of areas, including parts of the Northern Aegean, the Dodecanese, and Evros. The islands included in the reduced rate:


  • Lipsi (Dodecanese) — 778

  • Tilos (Dodecanese) — 746

  • Agathonisi (Dodecanese) — 202

  • Chalki (Dodecanese) — 475

  • Megisti (Dodecanese) — 584

  • Kalymnos (Dodecanese) — 17,752

  • Nisyros (Dodecanese) — 1,048

  • Patmos (Dodecanese) — 3,283

  • Symi (Dodecanese) — 2,603

  • Karpathos (Dodecanese) — 6,567

  • Kasos (Dodecanese) — 1,223

  • Astypalaia (Dodecanese) — 1,376

  • Limnos (Lesvos) — 16,411

  • Agios Efstratios (Lesvos) — 257

  • Ikaria (Samos) — 8,843

  • Fournoi (Samos) — 1,343

  • Oinousses (Chios) — 911

  • Psara (Chios) — 420

  • Samothrace (Evros) — 2,596

VAT Exemption for New Constructions

The 24% VAT on newly built homes continues to be suspended in 2026. The suspension began in 2020 and has been extended each year since, and it is now confirmed to the end of 2026 under Law 5246/2025. Under it, developers can request an exemption for specific projects, so instead of 24% VAT, a new property is subject only to the 3.09% transfer tax. For the buyer, that is a significant saving, since VAT is much higher than the transfer tax.

Property Tax Changes at a Glance

In summary, the measures announced in September 2025 include:

  • Lower annual property tax for small-town and village homeowners

  • A reduced rate for rental income between €12,001 and €24,000

  • A lower VAT rate for border islands, and a continued VAT exemption for new construction



Through these measures, large groups of property owners in Greece stand to benefit. Whether you already own a home or plan to buy, these changes can help you plan your property budget and rental income for 2026 and beyond.

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